HB 5598

relating to the minimum wage and a requirement for a biennial study
and report on the living wage in this state, expanding access to
childcare, and providing paid parental leave.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1.  RAISING THE MINIMUM WAGE
SECTION 1.01  Section 62.051, Labor Code, is amended to read
Sec. 62.051.  MINIMUM WAGE.  Except as provided by Section
62.057, an employer shall pay to each employee not less than the
(2)  the federal minimum wage under Section 6, Fair
Labor Standards Act of 1938 (29 U.S.C. Section 206).
SECTION 1.02  Subchapter B, Chapter 62, Labor Code, is
amended by adding Section 62.058 to read as follows:
Sec. 62.058.  BIENNIAL STUDY AND REPORT ON STATE LIVING
WAGE.  (a)  In this section, "consumer price index" means the
Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W), published by the Bureau of Labor Statistics of the United
(b)  Not later than September 1 of each even-numbered year,
the commission shall conduct a study and deliver a report to the
legislature on the living wage in this state.  In conducting the
study, the commission shall seek to determine what wage rate is
required to meet minimum standards of living throughout this state,
classified on the basis of county or region.  In making that
determination, the commission shall consider factors such as the
consumer price index and the cost of daily necessities in each
(c)  In its report, the commission must include information
from the preceding two-year period for each county or region
(1)  the number of jobs created that pay at least the
(2)  the effect of the consumer price index on the
purchasing power of individuals and families;
(3)  the cost of daily necessities, such as housing,
clothing, food, health care, and child care;
(4)  the number of small businesses created and closed;
(5)  housing affordability for individuals and
families relying on the minimum wage; and
(6)  the feasibility of obtaining health care coverage
when working in a job paying the minimum wage.
(d)  The commission may consult with other state agencies as
necessary to conduct the study under this section.
SECTION 1.03  Section 62.151, Labor Code, is repealed.
ARTICLE 2.  PAID PARENTAL LEAVE
SECTION 2.01  Subtitle B, Title 4, Labor Code, is amended by
adding Chapter 320 to read as follows:
CHAPTER 320.  PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES
Sec. 320.001.  DEFINITIONS.  In this chapter:
(1)  "Employee" means an individual who performs
services in this state for an employer for compensation under a
contract for hire, whether express or implied.  The term does not
include an independent contractor or a state employee to which
Section 661.9125, Government Code, applies.
(2)  "Employer" means a person that employs 50 or more
Sec. 320.002.  PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES.
(a)  This section applies only to an employee who, during the
preceding 12 months, has worked for the employer on a full-time
(b)  Subject to Subsection (c), an employee to whom this
section applies is entitled, on request, to 60 days of paid leave
(1)  birth of a child by the employee;
(2)  birth of a child by the employee's spouse;
(3)  birth of a child by a gestational surrogate;
(5)  provision of foster care or kinship care to a child
younger than one year of age who is in the conservatorship of the
Department of Family and Protective Services.
(c)  The amount of paid leave to which an employee is
entitled under Subsection (b) for each week of leave taken under
that subsection is an amount equal to the employee's average weekly
wage during the 12-month period preceding the first day that the
employee takes leave under that subsection.
(d)  This section does not entitle an employee to leave in
addition to any leave the employee is entitled to under the federal
Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et
seq.).  An employee is not entitled to paid leave under this section
for any period during which the employee is taking other paid leave.
(e)  An employee may not take leave under this section:
(1)  later than the first anniversary of the date of
birth or adoption of a child or placement of a child in foster care
(2)  more than one time during a 12-month period.
(f)  Notwithstanding any other provision of this section, an
employee who takes leave under this section for the purpose
described by Subsection (b)(1) may take the leave before the birth
(g)  An employer may not take an adverse employment action
against an employee because the employee has taken or plans to take
paid leave under this section.  For purposes of this subsection,
"adverse employment action" includes termination or suspension of
the employee's employment, an action that affects the employee's
compensation, promotion, or performance evaluation, or any other
employment action that would dissuade a reasonable employee from
taking paid leave under this chapter.
Sec. 320.003.  PAYMENT OF PAID PARENTAL LEAVE COSTS.  (a)  To
pay for the costs associated with paid leave required under Section
320.002, an employer may directly pay those costs or maintain an
insurance policy providing coverage for those costs in accordance
(b)  An employer electing to maintain an insurance policy
under Subsection (a) shall maintain a policy that provides
sufficient coverage for the employer's employees who are entitled
to paid leave under Section 320.002.  To the extent the policy does
not cover the costs associated with paid leave required under
Section 320.002, the employer is liable for those costs.
(c)  The commissioner of insurance may adopt rules
prescribing sufficient coverage requirements and reasonable rates
for an insurance policy described by this section.
Sec. 320.004.  EXCEPTION.  Notwithstanding any other
provision of this chapter, an employee is not entitled to paid leave
under Section 320.002, and an employer is not required to pay costs
associated with that leave under Section 320.003, if no insurer
authorized to engage in the business of insurance in this state
offers an insurance policy described by Section 320.003 by October
1 of the year preceding the year in which the paid leave requirement
SECTION 2.02  An employee is not entitled to paid leave under
Chapter 320, Labor Code, as added by this Act, before January 1,
ARTICLE 3.  EXPANDED CHILDCARE SUBSIDY
SECTION 3.01  Subchapter A, Chapter 302, Labor Code, is
amended by adding Section 302.00415 to read as follows:
Sec. 302.00415.  SUBSIDIZED CHILD CARE PROGRAM:
ELIGIBILITY.  (a)  A child is eligible for subsidized child care if
(A)  younger than four years of age; and
(B)  a member of a household with a total annual
income that is at or below 250 percent of the federal poverty
(2)  meets eligibility requirements established by the
(b)  The commission may adopt rules necessary to administer
SECTION 3.02  This Act takes effect September 1, 2025.